In a dramatic twist to the long-running TikTok saga, former US President Donald Trump has publicly championed a proposed agreement that would see the viral video app wrestled from its Chinese ownership. The deal, which would create a new US-based entity called TikTok Global, is being hailed by Trump as a major victory for American security and interests.
However, the celebratory mood in Washington has been met with a stark warning from Beijing. Chinese officials have expressed profound unease, suggesting the arrangement could force the unprecedented and highly sensitive transfer of China's core algorithm technology—the very engine that powers the app's success.
The 'Trump-Approved' Deal: Oracle and Walmart Step In
The proposed solution, which Trump dubbed "a great deal," would see American tech giant Oracle become TikTok's "trusted technology partner," handling all US user data and associated computer systems to satisfy national security concerns. Retail behemoth Walmart is also poised to take a significant stake, with its CEO, Doug McMillon, potentially securing a seat on the new company's board.
Trump emphasised that the new company would be "totally controlled" by Oracle and Walmart, and crucially, would be headquartered in the United States. He further announced that the new entity had promised to create 25,000 new jobs in the US.
Beijing's Algorithm Alarm
The reaction from China has been decidedly cooler. A Chinese government spokesperson stated that Beijing would "support the company in safeguarding its legitimate rights and interests" and strongly opposed Washington's "bullying" of a foreign business.
The core of Beijing's concern lies in the potential transfer of what it terms "core AI algorithms." The Chinese government has recently updated its export control list, specifically adding technologies like "personalised data recommendation services based on data analysis," which directly describes TikTok's signature algorithm. Any transfer of this technology would now require an official license from Chinese authorities.
A Cloudy Path Ahead
While Trump celebrates, the deal is far from sealed. It remains unclear if the proposed structure will fully satisfy the US government's original national security orders. Furthermore, gaining approval from Beijing for the algorithm's transfer presents a formidable, and potentially insurmountable, hurdle.
The situation leaves TikTok's 100 million US users and countless creators in a state of limbo, caught in the crossfire of an escalating technological cold war between the world's two largest economies.
